Qatar Islamic Bank (QIBK:QAR15.92) rises for a second consecutive day, a two-day rise of 0.6% 02 July 2020

NEWS BITES - MIDDLE EAST & NORTH AFRICA

Dateline: Thursday July 02, 2020

Qatar Islamic Bank (QE:QIBK), Qatar's 4th largest Bank by market cap, has risen 5.0 Dirham (0.3%) for a second consecutive day on Thursday. This brought its two-day rise to 10.0 Dirham (0.6%), compared with the QE Index which rose 124.5 points (1.4%) in the two days for a relative price change of -0.7%. Cumulative volume in the 2 days was 0.3 times the average 2-day volume of 628,768 shares. Qatar Islamic Bank's stock last traded at QAR15.92. There were 184,447 shares worth QAR2.9 million (US$806,701) traded today.

Bullish Turning Point

Relative Strength Index (RSI)

The Relative Strength Index (RSI) of 29.9 has breached the oversold line of 30, suggesting the price decrease of 1.3% in the last 14 days is unusually high. The RSI was previously 52.0.

Stock Summary

Currency1 USD = 3.64 QARDividend Yield3.3%
Jul 02 closeQAR15.92SectorBank
Ave Daily Volume628,768 sharesShares Outstanding236,293,200
52-Week Range13.11 - 16.92Market CapQAR3.8 billion [USD1 billion]
% Held by Top 12 Shareholders36.83EPS Growth % (y.o.y)900.0
P/E13.2

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INDEX

SECTION 1 News In The Past Quarter

SECTION 2 Corporate Profile

SECTION 3 Today's Bullish Signals

SECTION 4 Ongoing Bullish Parameters

SECTION 5 Today's Bearish Signals

SECTION 6 Ongoing Bearish Parameters

SECTION 7 Bank Metrics

Click here to view the following

SECTION 8 Dividend

SECTION 9 News Archives (Jul 2018 - Jan 2020)

Glossary

SECTION 1 News In The Past Quarter

1.1 Press Releases

June 28: QIB DISCLOSES THE SEMI-ANNUAL FINANCIALS ON JULY 15, 2020

Qatar Islamic Bank (QIB) announces its intent to disclose the financial reports for the period ending June 30, 2020 on Wednesday, 15/7/2020.

Source: mubasher.info

June 12: MOODY'S AFFIRMS QIB'S RATING AT 'A1' WITH A 'STABLE' OUTLOOK

Moody's Investors Service (Moody's) has affirmed the long-term deposit rating of Qatar Islamic Bank (QIB) at "A1", with a "stable" outlook. Moody's, one of the top international rating agencies in the world, cited: "The rating reflects the Bank's adequate capital buffers, good profitability and limited market-funding reliance, underpinned by its established and growing retail and corporate Islamic banking franchise." The Moody's report is highlighting QIB's "sound liquidity which mitigates funding pressures" as well as "a very high probability of government support in case of need" due to the Bank's importance to the local financial system and its designation as a domestic systematically important Bank by the Qatar Central Bank. As per the report, "QIB's outlook also takes into account the stable outlook on the Qatari government's bond rating of Aa3. The Bank's concentration of activities in Qatar, around 90% of its total assets as of March 2020, has resulted in a strong macro profile score, which is used to derive its ratings." Furthermore, the report is mentioning, "QIB has solid asset quality with a ratio of non-performing financing of 1.2% which compares favorably with the 1.9% average for the Qatari banking system (as of December 2019). The Bank's asset quality is also supported by exposures to the Qatari government and quasi-government institutions." Moody's expects "QIB's adequate capitalization to remain stable, with the Bank meeting future capital requirements arising from its asset growth through a combination of retained earnings and capital issuances." On the Bank's profitability, the report reiterated, "it is supported by a lower cost to income ratio and a solid, stable net profit margin". Bassel Gamal, QIB's Group CEO, said: "We are pleased with the affirmation of our rating by Moody's Investors Service.

May 18: CAPITAL INTELLIGENCE AFFIRMS QIB LONG TERM RATING AT A+ WITH STABLE OUTLOOK

Capital Intelligence (CI), the international credit rating agency, has affirmed the Long Term Foreign Currency and Short Term Foreign Currency ratings of Qatar Islamic Bank (QIB) at 'A+' and 'A1' respectively, with stable outlook.

Source: mubasher.info

April 24: Events Calendar: QIB ANNOUNCES THAT INVESTORS RELATION CONFERENCE CALL WILL BE HELD ON 22 April 2020

Qatar Islamic Bank (QIB) announces that the conference call with the Investors to discuss the financial results for the 1Q 2020 will be held on Wednesday 22April, 2020 at 01:00 pm, Doha Time.

Source: mubasher.info

1.2 People's News

Sun Jun 14, 2020

Bassel Gamal's performance as CEO of Qatar Islamic Bank (QE:QIBK) is ranked in the top 7% of BuySellSignals performers for the past ten years; a percentile ranking of 93.5. In the last 10 years the average annualized return to shareholders was 15.6%. The 10-year average return is ranked 2,781 out of 42,584 public companies traded globally. A four-bagger, the present value of US$1,000 (PV1000) invested 10 years ago is now worth USD4,262; a capital gain of USD2,257 and dividend reinvested of USD1,006.

SECTION 2 Corporate Profile

2.1 Activities

Qatar Islamic Bank provides banking services according to Islamic Sharia principles. The Bank carries out banking services, investment and financing activities through various Islamic modes of financing, such as Sukuk, Murabaha, Mudaraba, Musharaka, Musawama, Istisnaa and Ijarah. It also offers individual and corporate banking services. The Bank operates through 18 domestic branches and representative offices.

2.2 Contact Details

Websitehttp://www.qib.com.qa
Physical AddressGrand Hamad Ave. - Doha 559
Phone974 -4409409
Fax4412700
Emailinfo@qib.com.qa

2.3 Industry & Sector

Classification LevelName of Sector
Business SectorBanking & Investment Services
Industry GroupBanking Services
IndustryBanks
Economic SectorFinancials

SECTION 3 Today's Bullish Signals

3.1 Momentum Up 3.4% Past Month

In the past quarter the week beginning Sunday April 05 saw the highest weekly rise of 8.6% for a relative price increase of -0.3%.

The Best 3 weeks in the past quarter:

Sun-ThuChange %QE index Change %RPC %Vol Ind [1 is avg]
Apr 05-098.68.9-0.31
Jun 14-182.51.51.10.7
Apr 26-301.53.2-1.80.3

3.2 Rank in the top 11% by Relative Valuation in the Qatar market

DescriptionValueRank
P/E * P/NTA2.24In Top 4%
Price to Book Value0.2In Top 11%

3.3 Uptrend

Today's Volatility:

The 5.9% discount to 12-month high of QAR16.92 against the 21.4% premium to 12-month low of QAR13.11 suggests the stock continues to push for new highs.

Today its volatility (highest price minus lowest price/lowest price) of 2.2% was 1.2 times the average daily volatility of 1.9%, up from 1.9% on Wednesday and 1.4% on Tuesday. A rise in the price on high volatility is a bullish signal.

Positive MACD:

- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 15.97 minus the 26-day EMA of 15.86 is positive, suggesting a bullish signal.

Past Quarter:

- The shares had their best quarter in seven quarters since the quarter ended October 02, 2018.

3.4 Undervaluation

Price/Earnings:

Qatar Islamic Bank stock is trading at the eleventh lowest P/E multiple in the QE Index.

Dividend Yield:

Qatar Islamic Bank stock is the fifteenth highest dividend yielding stock in the QE Index.

Dividend Yield > Bond Yield of 2.17%:

The dividend yield of 3.33% is 1.53 times the triple-A bond yield of 2.17%. The times factor of 1.53 is above the benchmark factor of 0.67 times set by Benjamin Graham.

(All figures in %)

Dividend Yield3.33
Bond Yield2.17
Spread1.16

3.5 Other Bullish Signals

- Return on Equity of 13.5% versus sector average of 11.8% and market average of 8.9%.

- As per the Du Pont analysis, Return on Equity of 13.5% is better than sector average of 11.8%. This is computed as net profit margin of 343.5% times asset turnover [sales/assets] of 0.05 times leverage factor [total assets/shareholders' equity] of 7.4.

3.6 Oversold/Bullish Signals:

- The Relative Strength Index (RSI) of 29.9 has breached the oversold line of 30, suggesting the price decrease of 1.3% in the last 14 days is unusually high.

SECTION 4 Ongoing Bullish Parameters

4.1 Rank in the top 21% by Performance in the Qatar market

DescriptionValueRank
Net Profit Margin %343.5In Top 12%
EBITDA Margin %335.2In Top 21%

4.2 Annualised Period-based Total Shareholder Returns [TSR %]: The Best Periods with TSR > 15.1%

TSR %3 yrs5 yrs10 yrs
QIBK.QE29.218.115.2

4.3 Present Value of QAR1000 Invested in the Past [3 Mo, 1 Yr, 3 Yrs]; The Best Periods with PVQAR1000 > 999

PVQAR1,0003 mo ago1 yr ago3 yrs ago
QIBK.QEQAR1,119QAR1,000QAR2,176
Bank sectorQAR1,033QAR952QAR1,001
QE IndexQAR1,107QAR869QAR1,058

4.4 The Best Periods [3 Mo, 3 Yrs] with Price Change % > 11.8

3-Year price change of 93% for Qatar Islamic Bank outperformed the change of 1.8% in the QE index for a relative price change of 91.2%.

Price Change %Quarter3 Years
Qatar Islamic Bank11.993
Bank sector3.3-3.1
QE index10.41.8

4.5 EPS growth [FY2019 vs FY2018] of 12.0%:

There have been five rises in the past 5 years. Average Annual Compounded rate of growth in EPS for the 5 years was impressive at 12.3%.

FYEPS (QAR)Growth %
20191.2112.0
20181.0816.0
20179.318.9
20168.556.1
20158.0618.9

4.6 Increased Volume, up 511% in 5 years

In the past five years, Average Daily Volume of Trading (ADVT) has increased 511.4% to 628,768 shares.

Avg. Daily Volume Traded 12 months ended Jul 02, thousand shares

YearADVT
2020628.8
201979.5
201890.4
2017103.7
2016102.8

4.7 Increased VWAP, up 78% in 5 years

In the past five years Volume Weighted Average Price (VWAP) has increased by 78.3% to QAR15.23. Based on a dynamic start date of five years ago, there has been no decline in VWAP over the last 5 years.

Past five years, 12 months ended Jul 02 (QAR)

YearHigh PriceVWAPLow Price
202016.9215.2313.11
201917.1314.3710.95
201811.659.677.73
20179.958.977.74
20169.858.546.11

4.8 Satisfies one criteria of Benjamin Graham

- The P/E of 13.2 multiplied by the P/NTA of 0.2 is 2.2. Being less than the Benjamin Graham benchmark of 22.5 the stock appears undervalued.

SECTION 5 Today's Bearish Signals

5.1 Momentum Down 1.6% Past Week

Qatar Islamic Bank underperformed the QE index in 3 out of 5 days. The price ranged between a low of 15.82 on Tuesday, Jun 30 and a high of 16.04 on Thursday, Jun 25.

DayQatar Islamic BankClose price [QAR]Price change %Relative change %Comment
WednesdayInches higher, resistance at 12-day EMA15.870.3-0.3Top Rise
TuesdayDrops on high volatility15.82-0.4-0.5Week-low of 15.82
MondayFalls for a sixth consecutive day, a six-day fall of 2.5%15.89-0.30.5Falls for a sixth consecutive day
SundayDecreases, drops 2.1% for week15.94-0.60.2Steepest Fall
ThursdayFalls in 4 out of last 5 days; 5-day fall of 1.1%16.04-0.5-0.3Week-high of 16.04

5.2 Rank in the bottom 11% by Relative Valuation in the Qatar market

DescriptionValueRank
Dividend Yield %3.3%In Bottom 11%

5.3 Overvaluation

Price/Earnings of 13.2 > sector avg of 8.2:

- Price/Earnings of 13.2 versus sector average of 8.2 and market average of 11.0.

Earnings Yield of 7.6% < Qatar ave of 9.1% > Bond Yield of 2.2%:

- Earnings yield of 7.6% is less than the Qatar average earning yield of 9.1%.

- The earnings yield of 7.6% is 3.5 times the 10-year bond yield of 2.2%.

(All figures in %)

Earnings Yield7.6
Qatar avg9.1
Dividend Yield3.3
Bond Yield2.2

5.4 Other Bearish Signals

- Return on Capital Employed of 1.8% versus sector average of 4.2% and market average of 4.1%.

SECTION 6 Ongoing Bearish Parameters

6.1 Declining share turnover

In the past five years, average daily share turnover has decreased 0.1% to QAR8.4 million (US$2.3 million). This suggests decreased liquidity.

Past five years, 12 months ended Jul 02 (QAR million)

YearAverage Daily Turnover
20208.4
20198.0
20188.7
20179.0
20168.4

6.2 Satisfies 3 out of 9 criteria of Joseph Piotroski [pass mark 5]:

- Positive net income.

- Return on Assets improvement [from 1.7% to 1.8%].

- Total shares on issue unchanged.

SECTION 7 Bank Metrics

7.1 Bank Metrics (FY2019)

DescriptionQAR B FY2019QAR B FY2018]Change
Bank Revenue7.7 6.9 Up 12.4%

Favourable Changes:

- Bank Revenue up 12.4% from QAR6.9b to QAR7.7b

Glossary

ADVT: Average Daily Volume of shares Traded

Capital Gain/Loss from n Years Ago to n-1 Years Ago: Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)

Dividend Yield: Dividend Per Share/Share Price (%)

Earnings Yield: Earnings Per Share/Share Price (%)

Income during the n years (3/2/1): Dividends received during the Period

PV1000: Present value of 1000 invested 1 year/'n' years ago

Price/Earnings: Share Price/Earnings Per Share (times)

Price/NTA: Closing Share Price/Net Tangible Assets Per Share (times)

Relative Price Change [RPC]: Relative price change is price change of stock with respect to Benchmark Index

Relative Strength (6 Months): Price close today/Price close 6 months ago, then ranked by percentile within the entire market.

Return on Assets: Net Profit/Total Assets (%)

Return on Equity (Shareholders' Funds): Net Profit/Net Assets (%)

TSR: Total Shareholder Returns is expressed as an annualized rate of return for shareholders after allowing for capital appreciation and dividend

TTM: Trailing 12 Months

Volatility: Highest Price minus Lowest Price/Lowest Price (%)

Volume Weighted Average Price (VWAP): The Volume Weighted Average Price (VWAP) is the summation of turnover divided by total volume in the same period.

Created by www.buysellsignals.com